A lawsuit filed by two West University homeowners alleges that the Travis Central Appraisal District uses methods — in particular for valuing land — that unfairly benefit the owners of commercial properties over single-family residences.

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Lawsuit: Land is unfairly valued

Appraisals discriminate against single-family homeowners, man says.

ByAndra Lim ALIM@STATESMAN.COM A lawsuit filed by two West University homeowners alleges that the Travis Central Appraisal District uses methods — in particular for valuing land — that unfairly benefit the owners of commercial properties over single-family residences. It started when Stuart Henry, a semiretired environmental lawyer, received notices that showed a spike in the appraised value of the land underneath the three Central Austin homes he and his wife rent out. Henry’s land was appraised from $51.32 to $69.17 a square foot. As he researched other nearby properties, Henry found that land topped with small businesses or multifamily dwellings, as well as vacant commercial lots, was often valued at just $20 a square foot. The American-Statesman previously reported that an appraisal district official who reviewed Henry’s research acknowledged that some commercial land in the West University neighborhood might be worth more than it was valued at, and said the district would review the appraisals of specific properties in the area. But when Henry formally protested his appraisals, his evidence was ignored by members of the appraisal review board, he said. Those board members, who are named as defendants in the lawsuit Henry filed Thursday, did knock down the value of his properties by a combined total of $131,531 based on the sales prices of comparable properties, he said. At those appraised values, Henry would have to pay a total of $22,083 in taxes this year. But if his land was valued the same as commercial properties — and if tweaks weren’t made, per the appraisal district’s typical practice, so his overall appraisals matched the local level of sales — Henry would instead pay $8,524. His aim isn’t just to get his own taxes reduced. Henry said he filed the lawsuit after becoming convinced the appraisal district is discriminating against the owners of single-family homes, and hopes the lawsuit requires the appraisal district to change its practices so properties county-wide are valued “fairly and equitably.” “It’s easy to pick on, if you will, the single-family residences,” Henry said. “It’s a lot more difficult politically and administratively to take on commercial properties with their cadre of lawyers and appraisers.” Last year, 27 lawsuits were filed against the appraisal district regarding single-family homes, said Chief Appraiser Marya Crigler, who is also named as a defendant in the lawsuit. More than 400 lawsuits were filed regarding commercial and oth er properties, she said. Sharon Baxter, the appraisal district’s senior litigation attorney, said the district hadn’t been served with Henry’s lawsuit and declined to comment on it. Speaking in general terms, Baxter said that a lawsuit filed by a property owner can only result in relief for the spe cific properties that owner had protested. But Henry’s lawsuit also seeks declaratory relief, said Brad Rockwell, an attorney who’s working with Henry. The lawsuit asks the court for a declaration that the appraisal district’s method of appraising Henry’s properties and other proper ties doesn’t abide by the state constitution and property tax code. State law requires that the appraisal district separately value land and “improvements” on the land, such as a house. Tax bills typically start getting mailed out in October. If Henry’s case isn’t settled when it comes time to pay the bill, he can pay the portion of his taxes that’s not in dispute, and then make another payment if he’s unsuccessful in court. Or, Henry could pay the whole bill and receive a reimbursement if he’s successful in court. If his appraisal notices next year look similar, he’d sue again, Henry said.